Gpsc Dyso Nayab mamlatdar Final Answer key Declared
- Gujarat Public Service Commission
- Deputy Section Officer / Deputy Mamlatdar, Class-III, (Advt No. 20/2019-20) P.T. Date : 08.12.2019
- F I N A L A N S W E R K E Y For Question No. 001 - 200 is declared as below
There are a variety of funds covering different industries and different asset classes available. Some of the advantages of this kind of investment include advanced portfolio management, dividend reinvestment, risk reduction, convenience, and fair pricing.
Disadvantages include high expense ratios and sales charges, management abuses, tax inefficiency, and poor trade execution.
Here's a more detailed look at both the advantages and disadvantages of this investment strategy.
Advantages of Mutual Funds
There are many reasons why investors choose to invest in mutual funds with such frequency. Let's break down the details of a few.
Advanced Portfolio Management
When you buy a mutual fund, you pay a management fee as part of your expense ratio, which is used to hire a professional portfolio manager who buys and sells stocks, bonds, etc. This is a relatively small price to pay for getting professional help in the management of an investment portfolio.
As dividends and other interest income sources are declared for the fund, it can be used to purchase additional shares in the mutual fund, therefore helping your investment grow.
Risk Reduction (Safety)
Reduced portfolio risk is achieved through the use of diversification, as most mutual funds will invest in anywhere from 50 to 200 different securities—depending on the focus. Numerous stock index mutual funds own 1,000 or more individual stock positions.
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